Could this finally be the rally we have been looking for?
After an early drop that kept us out of the market, we got a great buy signal from the AMEX as it turned sharply upward at 11am. I would have felt better if the index had broken its 50 dma of 1,795 but any move up tomorrow puts it above with the others.
http://finance.yahoo.com/q/bc?s=%5EXAX&t=1d
Everyone will talk about Dow 11,000 tomorrow but let’s hold it for more than a day this time before we break out the champagne. My weekend notes to myself include: Dow > 11K = massive bull market – let’s hope I was right…
Pretty much everything worked today. The oils had a bit of a recovery mid-day but settled in near their lows. The Valero rule should have kept you out of the puts as it went up against the price of oil pretty much all day.
http://finance.yahoo.com/q/bc?s=VLO&t=1d&l=on&z=m&q=l&c=
I made a call in the comments to go for the oil puts at 3:12 as I thought the sector rally looked very artificial. I am only liking the March puts as these stocks can be held up through expiration on Friday. Inventory reports will be key tomorrow and a positive open could provide additional buying opportunities early on. Oil closing near the day’s low at $59.52 has caught many traders far on the wrong side of the contracts.
Gold also bounced off resistance and finished just under $550. These stocks are too crazy to play today.
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TGT ended up doing well today, despite their warning and the SHLD trade worked out very well so far.
URBN made a nice move and a far better one after hours (not sure why).
JAKK did just what we thought and gave us a very cheap entry on the Mar $22.50s (again, discussed in comments).
LVS came through with very good earnings but, like Google, not good enough to justify the valuation. To add insult to shareholder injury, the company announced it will file a 55M share ($3Bn) secondary offering, I believe for the sole purpose of cashing out the owners. “All the shares will be sold by selling stockholders and, accordingly, Las Vegas Sands Corp. will not receive any proceeds from the offering,” the company said in a news release. Nice…
AAPL finally showed signs of life today, a good sign if it keeps up.
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We will have to see what tomorrow brings, it will be a shame if we sell off as we have a very tenuous hold on positive territory. Bernanke will dominate the afternoon while oil will be the story of the morning.
